Pretty much every parent wants the best for their children. Meeting their daily needs and instilling good virtues are excellent steps, of course. But, do you have contingency measures in place to ensure that your little one will continue receiving amazing care should something happen to you?
Understandably, it is never easy thinking about your own mortality. However, the arrival of children into your life has a way of bringing this subject to the forefront. Of course, no one knows what the future holds. However, with a little foresight and planning, you can have peace of mind knowing that all will be well with your assets and loved ones should you pass on or become incapacitated.
Here are two important estate planning considerations that you should take seriously if you have children.
Including a guardian designation in your will
Who will take care of your kids when you and your spouse pass on or become incapacitated? If you are yet to make arrangements to ensure your little ones will end up in proper households, you are doing them a great disservice. Designating a guardian in your last will and testament gives you peace of mind knowing that your child will be cared for in the event of your demise.
Creating a trust for your children
A trust can be an excellent tool for passing on your assets to your children while ensuring that they will use the assets therein in a responsible manner. And, a trust is a great idea because it protects your estate from the costly probate process as well as some taxes. You can opt for a revocable living trust that you can change during the course of your lifetime or an irrevocable one. One of the main benefits of setting up a trust is that it allows you to put restrictions on when and how your children will access your assets. For instance, you can specify that your children will access 10 percent of the trust money when they clear high school, 20 percent when they clear college and the remaining 50 percent when they marry.
Life is constantly changing, and so should your estate plan. Thinking about, and including, certain measures in your estate plan will ensure that your assets and children’s future are adequately safeguarded.